Summary
TLDR: The upcoming Bitcoin halving may negatively impact miners, leading to decreased profitability. However, some miners are preparing by investing in more efficient operations. Price may lag behind after the halving, causing difficulty to drop until surviving miners can mine profitably again. Competition will increase, with only the most adaptable miners surviving and thriving in the long run.
Key Points
1. Historically, the supply shock generated by the halving has marked the start of significant bull markets for bitcoin.
2. Bitcoin miners need the price to increase to stay in business, especially as their proceeds are about to be reduced by half.
3. All in all, the situation in the coming months resembles an old story of two men hiking in the woods, who stumbled across a mean grizzly bear about to charge.